Loonie Largely Maintains Altitude as Commodity-Dollar Cousins Dip

Aug 21, 2013 12:31 pm ET

Bloomberg News

By David George-Cosh

The Canadian dollar’s resilience has once again taken economists and investors by surprise this year.

At least so far.

Many expected the loonie to be buffeted by headwinds this year, but more than halfway through the year, the currency has held fairly steady and has outperformed its commodity-dollar cousins, the Australian and New Zealand dollars.

All three are sensitive to commodity prices, which have been under pressure this year. But the Aussie dollar has slumped 13% against the U.S. dollar since its highs back April and the Kiwi dollar’s down by about 9%. The Canadian dollar, though, is down just 2.8% from the same time, bucking forecasts that have called for more dramatic declines.

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